Survey of State Laws on Credit Unions Incidental Powers

Survey of State Laws on Credit Unions Incidental Powers Alabama Ala. Code 5-17-4(10) To exercise incidental powers as necessary to enable it to carry on effectively the purposes for which it is incorporated and other powers as are expressly authorized by the administrator of the Alabama Credit Union Administration. Alaska Alaska Stat. 06.45.060(16) A credit union has succession in its corporate name during its existence and may exercise incidental powers as are necessary or required to enable it to carry on effectively the business for which it is incorporated. Arizona Ariz. Rev. Stat. 6-515(B) convenient, suitable or necessary to enable it to promote or carry out its purposes. Arkansas Ark. Code Ann. 23-35-601(16) A credit union shall have the power to exercise the powers granted corporations organized under the laws of Arkansas and such additional incidental powers as may be necessary or requisite to enable it to promote and efficiently carry on its purposes. California Cal. Fin. Code 14052 In addition to the powers enumerated in this division, every credit union has the general powers conferred upon corporations by the Nonprofit Mutual Benefit Corporation Law of this state unless restricted by this division. Colorado Colo. Rev. Stat. 11-30-104(1)(i) A credit union has the power to exercise such incidental powers as shall be necessary to enable it to carry on effectively the business for which it is incorporated. 1

Connecticut Conn. Gen. Stat. 36a-455a(1) A Connecticut credit union may: (1) Transact a general credit union business and exercise by its governing board or duly authorized members of senior management, subject to applicable law, all such incidental powers as are consistent with its purposes. The express powers authorized for a Connecticut credit union under this section do not preclude the existence of additional powers deemed to be incidental to the transaction of a general credit union business pursuant to this subdivision; Delaware No state credit union act Florida Fla. Stat. 657.031(3) A credit union formed under this chapter shall operate as a financial institution, consistent with the provisions of chapter 655 and this chapter, and may exercise such incidental powers as are necessary or required to effectively carry out the purposes for which the credit union was organized, provided the exercise of powers is approved by rule or order of the commission or office. Georgia Ga. Code Ann. 7-1-650(6) A credit union shall have, in addition to the powers common to all corporations under the laws of this state, the following powers: (6) It may undertake with the approval of the department other activities which are not inconsistent with this chapter or regulations adopted pursuant thereto, including such powers as are afforded to federally chartered credit unions, either directly, through a subsidiary corporation, or in cooperation with other credit unions; provided, however, no such approval shall be granted unless the commissioner determines the activities do not present undue safety and soundness risks to the credit union involved; Hawaii Haw. Rev. Stat. 412:10-200(b) necessary or requisite to enable it to effectively carry out its purposes. 2

Idaho Idaho Code Ann. 26-2108(r) Illinois 205 ILCS 305/14 A credit union shall have the power to: Exercise such incidental powers as are necessary to carry on the business for which it is incorporated not inconsistent with the provisions of this chapter. A credit union may exercise such incidental powers as are granted corporations organized under the laws of this State including, to the extent such powers are not inconsistent with powers and prohibitions contained in this Act, such powers as are necessary or convenient to enable credit unions to promote and carry on their purposes. The provisions of this Section shall be interpreted liberally and not restrictively. Indiana Ind. Code 28-7-1-9(16) A credit union has the following powers: (17) To exercise such incidental powers necessary or requisite to enable it to carry on effectively the business for which it is incorporated. Iowa Iowa Code 533.301 11 A state credit union shall have the power to do all of the following: 11. Exercise such incidental powers as may be necessary or requisite to enable the state credit union to carry on the business effectively for which it is incorporated. Kansas Kan. Stat. Ann. 17-2204(l) Every credit union incorporated pursuant to or operating under the provisions of this act may exercise such powers, including incidental powers, as shall be necessary or requisite to enable it to carry on effectively the purposes and business for which it is incorporated. Kentucky Ky. Rev. Stat. Ann. 290.085 A credit union may exercise such incidental powers as are granted corporations organized under the laws of this state, including such as are convenient or useful to enable it to promote and carry on most effectively its purposes. 3

Louisiana La. Rev. Stat. Ann. 6:644(b)(11) To exercise the powers granted corporations organized under the laws of the state of Louisiana and such incidental powers as may be necessary or requisite to promote and carry on effectively its purposes. Maine Me. Rev. Stat. Ann. tit. 9-B 821 In addition to all services to members and to nonmembers as provided in section 817 incidental to the powers granted credit unions elsewhere in this Title, a credit union is empowered to do the acts set forth in this chapter, subject to the conditions and limitations set forth herein. Maryland Md. Code Ann., Fin. Inst. 6-204 A credit union may exercise all the rights, privileges, and incidental powers necessary or appropriate to exercise its specific powers and to accomplish the purposes for which the credit union is organized. Massachusetts No statutory provision Michigan Mich. Comp. Laws. 490.403 A domestic credit union may exercise any incidental powers that are necessary or required to enable it to effectively carry out the business for which it is organized. Minnesota Minn. Stat. 52.04(16) [I]n furtherance of the twofold purpose of promoting thrift among its members and creating a source of credit for them at legitimate rates of interest for provident purposes, and not in limitation of the specific powers hereinbefore conferred, to have all the powers enumerated, authorized, and permitted by this chapter, and such other rights, privileges and powers incidental to, or necessary for, the accomplishment of the objectives and purposes of the credit union[.] Mississippi No statutory provision 4

Missouri Mo. Rev. Stat. 370.070(10) With the prior approval of the director of the division of credit unions, to provide to members fiscal and financial services, including temporary services to bona fide members of other credit unions, and to exercise such other incidental powers as are granted to general business corporations organized under the laws of this state, including such powers as are convenient or useful to enable it to promote and carry on most effectively its purposes, and all at a fee to be determined by the board of directors Montana Mont. Code Ann. 32-3-402 A credit union may exercise such incidental powers as are granted corporations organized under the laws of this state, including those that are necessary to enable it to promote and carry on most effectively its purposes. Nebraska Neb. Rev. Stat. 21-1742 suitable and necessary to enable it to carry out its purpose. Nevada Nev. Rev. Stat. 678.60 Every credit union organized under the provisions of this chapter: 1. Has all the powers granted by NRS 81.500 that are not inconsistent with the provisions of this chapter... Nev. Rev. Stat. 81.500(f) Each corporation... has the powers... To carry on any and all operations necessary or convenient in connection with the transaction of any of its business. New Hampshire No statutory provision 5

New Jersey N.J. Stat. Ann. 17:13-89(1) A credit union's powers shall include, but not be limited to, the power to: l. Have and exercise all the powers of corporations organized under Title 14A of the New Jersey Statutes which are not inconsistent with this act; N.J. Stat. Ann. 14A:3-1(1)(p) Each corporation, subject to any limitations provided in this act or any other statute of this State, or in its certificate of incorporation, shall have power (p) to have and exercise all other powers necessary or convenient to effect any or all of the purposes for which the corporation is organized. New Mexico N.M. Stat. Ann. 58-11-19 convenient, suitable or necessary to enable it to carry out its purposes as provided in its bylaws. New York N.Y. U.C.C. Law 11-454(34) To have and exercise all other powers that are necessary or appropriate to enable it to carry out its purpose. North Carolina N.C. Gen. Stat. 54-109.22 A credit union may exercise such incidental powers such as are necessary or requisite to enable it to promote and carry on most effectively its purposes. North Dakota N.D. Cent. Code 6-06-06.12 To exercise any incidental power necessary or requisite to enable the credit union to carry out effectively the business for which it is incorporated or as determined by the board by order or rule. Ohio Ohio Rev. Code 1733.03 The purpose for which a credit union may be formed is to promote thrift among its members, and to that end to establish, on a cooperative basis, facilities for savings, credit for provident and productive purposes, assistance to members in budgeting and money management and the effective use of their assets and resources, and all activities necessary or incidental thereto. 6

Oklahoma Okla. Stat. tit. 6 2006.16 A credit union shall have succession in its corporate name during its existence and shall have power: 16. To exercise such incidental powers as shall be necessary or requisite to enable it to carry on effectively the business for which it is incorporated. Oregon Or. Rev. Stat. 723.152(29) In addition to the powers conferred by the general corporation law a credit union may, subject to the restrictions and limitations contained in this chapter and the credit union s bylaws: (29) Exercise other powers that are necessary to carry out the credit union s purpose. Pennsylvania Rhode Island No statutory provision R.I. Gen. Laws 19-5-15(3)(iii) Every credit union shall have the power to exercise, by its board of directors or duly authorized officers or agents, all incidental powers necessary to carry on the business of a credit union including, but not limited to, the power: (iii) To exercise additional powers, not inconsistent with the carrying on of a credit union business, with the approval of the director or the director's designee. South Carolina S.C. Code 34-26-410(5) A credit union may exercise incidental powers to enable it to carry out its purposes. However, the powers granted by state law or regulation to a state-chartered credit union shall not exceed those provided by federal law to a federally chartered credit union. South Dakota No state credit union act Tennessee Tenn. Code Ann. 45-4-201(4) A credit union has the following powers: (4) It may undertake other activities, not inconsistent with this chapter, that the bylaws may provide Texas Tex. Fin. Code 123.002 A credit union may exercise any right, privilege, or incidental power necessary or appropriate to exercise its specific powers and to accomplish the purposes for which it is organized. 7

Utah Utah Code 7-9-5(32) In addition to the powers specified elsewhere in this chapter and subject to any limitations specified elsewhere in this chapter, a credit union may: (32) exercise incidental powers necessary to carry out the purpose for which a credit union is organized; Vermont Vt. Stat. Ann. tit. 8 32102(b) The expressed powers for a credit union authorized under this section do not preclude the exercise of additional powers deemed to be incidental to the transaction of a general credit union business pursuant to this part. Virginia Va. Code Ann. 6.1-225.21.14 In addition to the powers specified or implied elsewhere in this chapter or in the laws of this Commonwealth, a credit union may: 14. Undertake such other activities relating to the purposes of the credit union as its charter or bylaws may authorize, provided such activities are not inconsistent with this chapter. Washington Wash. Rev. Code 31.12.402(23) A credit union may: (23) Exercise such incidental powers as are necessary or convenient to enable it to conduct the business of a credit union. West Virginia W.Va. Code 31C-3-2 convenient, suitable or necessary to enable it to carry out its purposes. Wisconsin Wis. Stat. 186.113(10) A credit union may: (10) Exercise all powers necessary and proper to carry out the purposes of the credit union. Wyoming No state credit union act 8